PA tax, work in Philly but live in NJ

[binseal]

I work in Philly and live in NJ. 

The W2 shows PA wage, but no PA tax holding in 2024. Do I still need to file PA tax for 2024? Of course there is philly tax holding, and I can use that as a tax credit for NJ state tax. 

Thanks!

[MaryK4]

No, you do not need to file a Pennsylvania state income tax return.  Because New Jersey and Pennsylvania are reciprocal states, you are able to file and pay taxes to your resident state.  This saves you the hassle of filing two state returns.  

You can use the Philly tax as a credit for New Jersey.  See the steps below.  

[Edited 02/02/23| 10:24am PST]

[binseal]

Thanks for reply. Is that true we can’t use the Philly tax as credit to NJ tax? I have been doing this for years. I am pretty sure it is correct. TurboTax has instructions how to do it. PA usually holds PA tax, and I always filed PA tax return as well. Since PA did not hold in 2024, I am not sure should I file PA tax return. The weird thing is that there was PA state wage on W2 but no tax holding.

[MaryK4]

You can get the credit for the taxes paid to Philadelphia on your New Jersey return.  In the New Jersey section, you will see the Summary of Taxes Paid to Other States- you will look for the screen below and it will add the forms.  I corrected the answer above.   @binseal